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CHAPTER 5: CSR AND SUSTAINABILITY
CASE STUDY
In 2008, Vedan Vietnam Company
was found to have discharged waste
directly into the Thi Vai River (Dong
Nai) for many years, seriously 1. In what aspects has Vedan's
polluting water sources, affecting the behavior violated social
lives and production of thousands of responsibility?
households in Dong Nai, Ba Ria –
Vung Tau and Ho Chi Minh City.
This act seriously violates the Law
on Environmental Protection,
causing great damage to the [Link] you are a Vedan manager, what
community. solutions will you have to
The business had to compensate overcome and regain the trust of
more than 220 billion VND to the the community?
affected people, and at the same
time, the brand reputation was
severely impaired.
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Knowledge: Skills:
- Understand the concept of -Ability to evaluate CSR
sustainability and its relationship strategies from the perspective
with CSR. of sustainable development.
- Identify the pillars of sustainable - Applying CSR as a sustainable
development (economy – society management tool.
– environment). - Practice skills in analyzing and
- Understand the role of CSR in criticizing business situations
the implementation of the that associate CSR with the
Sustainable Development Goals SDGs.
(SDGs 2030). - Propose solutions to help
- Analyze the impact of businesses both ensure profits
integrating CSR into your and develop sustainably.
sustainability strategy.
5.1. Theory of sustainable development
CONTENTS 5.2. Implementing CSR enforcement of enterprises
5.3. Creating sustainable value
5.1.1. Concept of 5.1.3. Related foundational
sustainable development theories
5.1.2. The three pillars of 5.1.4. CSR and sustainable
sustainable development development
Derived from the Brundtland Report (1987) "Development meets
current needs without compromising the ability to meet the needs of
future generations"
→ It is a comprehensive development model, combining
economy – society – environment.
For example: Vinamilk: developing a dairy farm with Global
GAP standards, using renewable energy and publishing a
sustainability report according to the GRI.
UN SDGs 2030: 17 sustainable development goals of the United
Nations (poverty eradication, environmental protection,
education, health, etc.).
Economy: stable growth,
efficiency, innovation.
Society: fairness, poverty
reduction, improvement
of quality of life.
Environment: ecosystem
protection, economical
use of resources,
pollution reduction.
"3Ps" (People – Planet – Profit).
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Shared Value
1 Theory (CSV –
- Stakeholder Legitimacy theory: Creating Shared
Enterprises maintain Value): Businesses
theory:
their operations create benefits for
Enterprises must thanks to social both society and
meet the interests acceptance business.
of many groups,
not only
shareholders.
5.1.4. CSR AND SUSTAINABILITY
CSR is a tool to help enterprise aim for sustainable
development.
CSR is a tool to help enterprise aim for sustainable
development.
CSR is a bridge between enterprise and the SDGs –
Sustainable Development Goals of the United Nations.
5.2.4.
Challenges in 5.2.1. CSR
CSR policy and
implementati strategy
on.
5.2.3.
Implementati 5.2.2. Areas of
on tools and CSR
methods enforcement.
Establish a code of
CSR must be conduct and ethical
integrated into the Link CSR to long-
term business strategy. standards. Link CSR
vision and mission of to long-term business
the enterprise. strategy.
Society: taking Governance:
Environment: care of employees' information
emission reduction, lives, gender transparency, anti-
energy saving, equality, corruption,
green production. responsibility to compliance with
the community the law.
1 2 3 4
Participating
Sustainability
in global
Reporting Socially
treaties and
(GRI Sustainable Responsible
commitments
Standards, supply chain. Investment
(UN Global
ESG (SRI).
Compact,
Reporting).
SDGs).
2. Lack of leadership awareness
1. High initial investment cost.
and commitment.
CHALLENGE
3. Difficult to measure CSR 4. Conflict of interest between
effectiveness. short-term and long-term.
5.3.1. Concept of
sustainable value
5.3.2. Value for
Stakeholders
5.3.3. CSR and CSV
(Creating Shared Value)
5.3.4. CSR impact on
sustainable development
5.3.5. Typical
enterprises
5.3.1. CONCEPT OF SUSTAINABLE VALUE
Sustainable value is the long-term benefits that businesses create, both
ensuring economic growth, protecting the environment and improving social
welfare.
→ Value is not limited to financial returns.
Including social value, environment, and brand reputation.
For example: Vingroup: applying green technology in →
construction both enhances the brand and reduces greenhouse
gas emissions.
Stable profits, reduced
SHAREHOLDERS
risks.
Fair and safe working
EMPLOYEES
environment.
Quality and
CUSTOMERS environmentally
friendly products.
COMMUNITY: Welfare,
social development.
2. CSV: Solving social problems
1. CSR Tradition: Focus on to create new business
Responsibility & Compliance. opportunities.
For example: Nestlé: supporting Example: Vinamilk: school milk
farmers → stable supply. program
Increase competitiveness Driving innovation
Improve reputation and Create social consensus,
brand reduce legal & business
risks.
INTERNATIONAL VIETNAM
TH True Milk (high-tech farm chain,
Unilever (Strategy"Sustainable Living") organic milk production).
Traphaco (green pharmaceutical enterprises –
Tesla (electric vehicles, renewable energy developing products from natural medicinal
– towards green transportation). herbs, preserving medicinal plant genetic
resources).
Patagonia (sustainable fashion Vingroup (VinFast project – electric cars,
production, commitment to environmental
protection). green cities applying EDGE standards).
CONTENTS
5.1. Theory of 5.2. Implement
5.3. Creating
sustainable CSR enforcement
sustainable value
development of enterprises.